Explain briefly budgetary deficit.

1.	Explain briefly budgetary deficit.
Answer» Budgetary deficit: When the total expenditure (current as well as capital) is greater than the . total income (current as well as capital) it results in budgetary deficit. Solution: The central government undertakes deficit financing (i.e. borrows from RBI) to meet this deficit. The state governments borrow more from the central government which is then called overdraft.

Answer»

Budgetary deficit:

When the total expenditure (current as well as capital) is greater than the . total income (current as well as capital) it results in budgetary deficit.

Solution:

The central government undertakes deficit financing (i.e. borrows from RBI) to meet this deficit. The state governments borrow more from the central government which is then called overdraft.

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Explain briefly budgetary deficit.

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